Marking a groundbreaking 119% Y-o-Y surge, aiBANK achieved unparalleled net profits in FY23
aiBANK, a leading provider of comprehensive retail, corporate, and Islamic banking solutions in Egypt and the commercial bank arm of EFG Holding announced today its results for the full year ended 2023. The Bank’s net profits came in at EGP 1.15 billion, representing 119% Y-o-Y growth, on the back of strategic growth initiatives featuring enhanced product offerings, services, and new partnerships to better cater to clients’ evolving needs, on the other hand, net interest income increased by 42% to reach 2.5 billion EGP by the end of the fiscal year of 2023, compared to about 1.8 billion EGP at the end of the same period last year.
Driven by higher net interest income on the back of loan book growth and supported by an increase in the corridor rates, the Bank’s net operating profit rose 58% Y-o-Y to EGP 3.6 billion in FY23. Thanks to an increase in the retail loans portfolio by around 40% to EGP 7.5 billion, signifying increased support for businesses and individuals. aiBANK witnessed a peak in its total credit facilities portfolio without provisions by almost 9% to reach EGP 22.8 billion, compared to EGP 20.9 billion in December 2022. Likewise, the portfolio of corporate credit facilities reached EGP 15.3 billion, with the bank continuing to maintain a high capital adequacy ratio of 18.6%, supporting its growth strategy despite the ongoing economic challenges witnessed in the local and global markets.
aiBANK witnessed a 6% increase in customer deposits by the end of FY23, reaching a new high of EGP 50.9 billion compared to EGP 48.2 billion in December 2022. This notable growth reflects the increasing trust and confidence that customers place in aiBANK. The bank’s total assets also witnessed a considerable growth of 11%, reaching an impressive EGP 61.4 billion, compared to EGP 55.4 billion in December 2022. Total equity increased to reach EGP 6.5 billion for FY2023, a 21% increase compared to FY22.
Tamer Seif El-Din, CEO and Managing Director of aiBANK, commented, “Reflecting on aiBANK’s outstanding performance in FY23, we take immense pride in the progress we have achieved in expanding our product offerings and advancing financial accessibility in Egypt. Our strong results not only signify a financial milestone but also attest to our unwavering focus on customer-centricity. Furthermore, our strategic alliances with industry frontrunners highlight our commitment to driving innovation and meeting the evolving needs of our clientele. As we persist in innovating, collaborating, and empowering individuals and businesses, aiBANK remains resolute in its mission to deliver distinctive and competitive banking solutions while creating enduring value for our customers, shareholders, and the communities we serve.”
“Seif El-Din added that the bank is committed to supporting the government’s efforts to foster economic growth, as well promoting financial inclusion through all of its product and services to attract more savings and utilize them for investment purposes, as well as integrating the informal economy while offering new job opportunities to the Egyptian market.”
During the past year, aiBANK forged significant partnerships with several leading institutions to provide customers with a wide range of innovative products and services tailored to modern digital payment preferences. aiBANK forged impactful partnerships with Visa, Valu, Meeza, Instapay, and Fawry to deliver innovative financial solutions. aiBANK has also diversified its product portfolio to further promote accessibility by providing more Buy Now, Pay Later (BNPL) cards and payment plans, it also introduced the upfront-interest time deposit “Sallem w Estelem”.
To further expand its customer base and serve more segments, aiBANK installed 20 ATMs during 2023 to cover the most vital areas to increase accessibility for customers at any time and place. The Bank aims reaching 200 ATMs by the end of 2027 to align with its branch expansion plan.
In line with the directives of the Central Bank of Egypt (CBE), the bank not only met but exceeded its mandated 25% SME target percentage, showcasing a commitment to financial inclusion. By the close of December 2023, the proportion of small and medium enterprises within the bank’s loan and facilities portfolio had surpassed 30%, with a notable 20% earmarked for small projects. This achievement underscores the bank’s dedication to fostering financial accessibility and support for smaller ventures.
aiBANK actively contributes to Egypt’s Vision 2030 and the UN’s Sustainable Development Goals (SDGs) while prioritizing economic growth and integrating Environmental, Social, and Governance (ESG) principles into its operations and in all its business practices with suppliers. This includes reducing carbon emissions, promoting digital transformation, and implementing an Environmental and Social Management System (ESMS) to manage risks. Through the aiBANK Foundation for Community Development, partnerships with impactful organizations include collaborating with the EFG Foundation for Social Development and Magdi Yacoub Heart Foundation to train nurses at the Aswan Heart Centre, financing children’s education by covering the expenses of two community schools in Fayoum and providing food packages during Ramadan in collaboration with Dar Al Orman.
Recognized for its growth efforts across its products, services, and branches, aiBANK was named as the “Fastest Growing Bank in the Arab Region” in 2023 by the World Union of Arab Bankers. The Bank was also awarded “Best SME Financier” by the Africa Global Funds Service Providers Awards 2023. aiBANK has received the prestigious recognition of “Highly Regarded” at the SME Banking Awards by Euromoney Money Market Leaders. Moreover, the Bank was awarded as the Most Innovative SME Financing Campaign and Best Emerging CEO in Business Banking by Global Economics Awards.
aiBANK’s FY23 financial results and report of the board of directors are available here.-
aiBANK was established in 1974 as an investment and business bank under the supervision of the Central Bank of Egypt. Its activities started in 1978 with a capital base of USD 40 million, which was later increased to EGP 1,987 million in 2020. Moreover, as per the decisions of the general assembly held on the 10th of October in 2021, and after the completion of the Bank’s acquisition deal, the Bank received approval to increase its paid-up capital to EGP 5,000,000,003 and adjusted its ownership structure accordingly to accommodate both new and existing investors, as per the following:
EFG Holding S.A.E – (51%)
Egypt’s Financial Services and Digital Transformation Sub-Fund – (25%)
National Investment Bank – (24%)
The Bank offers the full spectrum of corporate & retail banking, investment, and treasury services. The Bank also offers Islamic banking services, overseen by a Sharia-compliant body that ensures the Bank remains in line with all criteria under Islamic banking. Additionally, the Bank provides loan syndication services to companies and institutions looking to finance large national projects that support the economy and the Bank. The Bank is keen to support the growth of small and medium enterprises, which play a crucial role in Egypt’s overall economic and social development.
The Bank offers its services to its customers through its 34 branches nationwide. It is constantly working on expanding its geographical presence by opening new branches and ATMs to ensure that it covers all key locations. The Bank is also committed to satisfying its customers by providing unique and competitive services and investing in its tech systems and human capital to improve the overall level of its banking services.
